Cost Of Health Care Final Paper

Topics: Health care, Health insurance, Health economics Pages: 10 (2328 words) Published: December 15, 2014


Cost of Health Care
Ja’Kaye Robinson
Professor Engle
HCA305 The U.S. Health Care System
September 22, 2014

Cost For Health ealth Care
Health Care spending cost are growing faster than the state of the economy as a whole and faster than the people can work to earn it. The United States has the most exspensive health care system in the world because it is based on health expenditures for each person and a sum percent of expenditures found on the GDP. Expenses on health care in the United States have been rising at an alarming rate and the economy has been unable to keep up for quite a while now, presenting challenges not only for Medicare and Medicaid, but for the private sector as well. As health care costs continue to consume a large portion of the nation’s financial revenue, Americans will be forced to make very difficult decisions about whether to provide health care for their families or possibly put food on the table. In the previous years alone prescription drugs expenditures has grown a great deal faster than any additional health expenditure. At the beggining of 2008, spending on hospital care was about 35 percent. Doctors made up around 20 percent, perscription drugs 15 percent, and long term care facilities represented 9 percent. In addition to this are the numbers of people who have no income. These citizens cannot afford the growing cost; nor can the United States manage to pay for it either. The Congressional Budget Office (CBO) claims that federal spending on Medicare and Medicaid will increase to 12% of the GDP (gross domestic product) in 2050 and 19 % of the GDP in 2082, which, contribute to the GDP corresponding to whole amount of existing spending of federal. The increase will likely result in spending leading to an ever-increasing nationalized debt. Healthcare spending in the long-run would reduce investments in household capital reserve, in addition to foreign assets, and cause economic immobility. Many Americans understand the financial trouble we are in when it comes to Health Care spending but do they know just how much? Common Wealth has concluded that six top industrialized countries, United Kingdom; Canada; the Netherlands; Germany; and New Zealand pay out less in health care services than the United States. These other developed countries exceed the healthcare in the US in regards to quality of service and effectiveness (Staff, 2010). On health care the U.S. had spend 17.4% of GDP in 2009, (OECD data). The adjoining challengers are Netherlands (12% of GDP), France (11.8%), Germany (11.6%), Denmark (11.5%), and Canada (11.4%). The U.S. has superior per capita GDP than these countries, so the space in complete spending is yet higher. In 2009, the U.S. spent $7,860 per person on health care, and the next challengers were Switzerland ($5,244 per person) and Netherlands ($4,914) .The United States spend about 20% of the GDP ( gross domestic product) on health care in opposition to other countries that are spending less than 12%. [Anderson GF, Reinhardt UE, Hussey PS, Petrosyan]] Within the past decade or so, the Centers for Medicare and Medicaid predict that the health care growth will exceed the GDP. Economists consider that it will make countries wealthier and go on to say that all extra expenditures will turn out to be good quality investments. The "stakeholders" are the people or groups that have an assigned interest in a given healthcare decision and the facts that uphold that decision. The Providers tend to view quality in a technical sense – accuracy of diagnosis, appropriateness of therapy, resulting health outcome. The Payers: Focus on cost-effectiveness.

The Employers: Want both to keep their costs down, and to get their employees back to work quickly. And The Patients: Want compassion as well as skill with clear communication. Stakeholders can be state, clinicians, caregivers, patients, researchers, advocacy groups, businesses, professional...

References: Feldstein, Martin. (2009). The global impact of America’s health care debate.
Kaufman, N. (2011). Changing economics in an era of healthcare reform. Journal of Healthcare Management, 56(1), 9-14.
Reinhardt UE, Hussey PS, Anderson GF: Cross – National Comparisons of Health Systems Using OECD Data, 1999
Staff, L. (2010). U.S. Last in Health Care Among 7 Industrialized Countries. Live Science.
Sultz, Harry A (2010). Health Care USA: Understanding Its Organization and Delivery [7] (VitalSource Bookshelf), Retrieved from http://online.vitalsource.com/books/9780763784584/id/ch03lev2sec4
Woolhandler, S., & Himmelstein, D
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